Americans like to spend. Unfortunately, 70% of Americans admit to bad spending habits, leading them to overspend by nearly $7,500 per year. Unless we change our spending habits and learn how to save, we will soon be facing a full blown retirement crisis. The Center for Retirement Research at Boston College estimates that about half of working-age households are “at risk” when it comes to their retirements. This means they will not have the savings they need to retire comfortably.
What’s the solution to the problem? Education or awareness isn’t the primary issue. A whopping 80% of those surveyed believed they were fully capable of improving their spending habits. The psychological aspect of money is a key driver in spending beyond one’s means. While there is no quick fix, this simple psychological tip can help you reach your financial goals faster.
Read the whole story: Motley FoolMore of our Members in the Media >